Buyers Guide - Part 1 of 2
What to Know Before You Buy
Now that you've spent the time to learn the basics about rent-to-own, analyzed and decided upon a budget that makes sense, and made a home wish list, it's now time to put your knowledge into action. It's time to get started contacting sellers and put yourself on the road to home ownership. There are number of items that are important to think about as you enter into this process. Your next steps are going to take time and diligence.
Before you can make an offer on a home you will need to find one well-suited for you and your family's needs. The best way to begin searching is to find a database full of homes already designated as having a rent-to-own option. Speaking with home owners who already are open to a rent-to-own contract means you get to avoid the discussions about why they should consider it. Click here to view our article on Listings Services
When contacting sellers it is recommended to begin with a warm and personable conversation. Remember that the tenant wants to sell their house and you may want to buy it. A few minutes of idle chit-chat can go a long way. Ask any necessary questions and set up a time that works for both of you to view the home.
If you are unable to find homes that are listed as rent-to-own options, you may need to expand your search to include motivated sellers. Contacting these sellers will require you to break the ice and express interest in their home. After you have done this you may consider suggesting a rent-to-own option. Remember to share the benefits
for both the buyer and the seller in your pitch. Not all sellers will be interested in this option and that is okay. As mentioned, this process takes diligence and effort.
When contacting sellers remember that kindness and communication can go a long way. You want to establish a good impression and build a positive connection with the property owner. It can only help.
Advertise Your Interest
You may not have any luck searching for listed housing or contacting motivated sellers. Another option is to advertise your interest. Doing this can cost little-to-nothing thanks to online classifieds. Consider listing your ad on an online marketplace like Craig's List. Your ad could look something like this:
Need to sell your home? No luck on the market? Consider a rent-to-sell arrangement! I am ready to find a new home and by renting to me you will have a regular rental cash flow!
Ideally, this will assist in bringing interested sellers to you as opposed to pursuing them. Be ready with your key sales points on the rent-to-own option, why it's a potential benefit to the seller just as much as the buyer. When a prospective seller reaches out to you, one can ascertain that they're already in a ready-to-sell mode. Make an appointment to view the home to further evaluate its potential.
Keep in mind that all responses may not be above board or even real. Performing careful research on the property will assist in providing a better judgement. Some unprofessional real estate brokers may use your ad as an opportunity to try and sell you on other properties or rentals.